We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

Double helping of losses for Freeserve

Unmetered access costing it £2.50 per customer

Home grown ISP Freeserve has announced pre-tax losses of £17.8m representing more than a two-fold increase for the first quarter of the year.

The company’s spiralling losses were revealed against a background of its continued support for unmetered access which is costing the company around £2.50 per month per subscriber.

Many ISPs have questioned the logic of providing a flat rate model while BT maintains its per-minute rate for use of its networks.

AltaVista was forced to abort its own much-hyped unmetered launch last month blaming BT for the fiasco.

Freeserve is claiming more than a quarter of a million users for its flat rate service, with more than two million subscribers overall.

"As we extend the availability of unmetered access we will drive more users to our portals, reduce our churn, increase time online and generate higher e-commerce and advertising revenues," said Freeserve chief executive John Pluthero.

The company claims it will start to make a profit on its unmetered offerings by the beginning of next year, following the introduction of BT’s wholesale pricing scheme for ISPs.


IDG UK Sites

Best Black Friday 2014 tech deals: Get bargains on smartphones, tablets, laptops and more

IDG UK Sites

What the Internet of Things will look like in 2015: homes will get smarter, people might get fitter

IDG UK Sites

See how Trunk's animated ad helped Ade Edmondson plug The Car Buying Service

IDG UK Sites

Yosemite tips: Complete Guide to OS X Yosemite